CAB129-45 — Page 499

Page 499 the provisions of that paragraph be understood as limiting the undertakings assumed by Japan by virtue of Article 16 of the Treaty.

(NOTE: The references to Articles 15 and 16 in paragraph (f) are under- stood by the United Kingdom as references to Articles 27 and 26 respectively of the United Kingdom draft. Article 13 is subject to further consideration on the part of both Governments.)

ARTICLE 14

Pending the conclusion of civil air transport agreements, Japan, during a period of five years, shall extend to each of the Allied Powers not less favourable inter- national civil air traffic rights and privileges than those they respectively exercised at the time of coming into force of the present Treaty.

(NOTE.-United Kingdom reserves Article 33 of the United Kingdom

draft.)

Chapter V.-Claims and Property

ARTICLE 15

(a) The Allied Powers recognise that Japan lacks the capacity to make payments in bullion, money, property or services which would enable Japan to maintain a viable economy, to meet its obligations for relief and economic assistance furnished since 2nd September, 1945, in furtherance of the objectives of the occupation, and also to make adequate reparation to the Allied Powers for war damage. However, each of the Allied Powers shall have the right to seize, retain, liquidate or other- wise dispose of all property, rights, and interests of Japan and of Japanese nationals (including juridical persons) which at any time between 7th December, 1941, and the coming into force of the present Treaty were subject to its jurisdiction, except-- (i) property of Japanese nationals permitted to reside during the war in the territory of one of the Allied Powers, except property subjected during that period to measures not generally applicable to the property of Japanese nationals resident in such territory;

(ii) all real property, furniture and fixtures owned by the Government of Japan and used for diplomatic or consular purposes, and all personal furniture and furnishings and other property not of an investment nature which was normally necessary for the carrying out of diplomatic and consular functions, owned by Japanese diplomatic and consular personnel;

(iii) property belonging to religious bodies or private charitable institutions and

used exclusively for religious or charitable purposes;

(iv) property rights arising out of the resumption of trade and financial rela- tions between the country concerned and Japan or acquired pursuant to authorisation by the country concerned before the coming into force of the present Treaty.

Property referred to in this paragraph shall be returned net of any expenses incident to its preservation. If any such property has been liquidated the proceeds shall be returned instead.

(b) The right to seize, retain, liquidate or otherwise dispose of Japanese pro- perty referred to in paragraph (a) above shall be exercised in accordance with the laws of the Allied Power concerned, and the Japanese owner shall have only such rights as may be given him by those laws.

(c) The Allied Powers agree to deal with Japanese trademarks and literary and artistic property rights on a basis as favourable to Japan as circumstances ruling in each country will permit.

(NOTE.-The foregoing suggestions regarding reparations are made subject to current exchanges of views.)

(NOTE.-United Kingdom reserves Articles 23 and 28 of United Kingdom draft and the question of dates in this and other relevant Articles.)

(NOTE United States reserves its position with respect to the following of assets 86 Japan. 587

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